Mark Szakonyi, Associate Editor | May 23, 2012 10:13AM EDT
RailAmerica said it is in preliminary discussions with third parties regarding the potential sale of the short-line and regional railroad holding company.
The Jacksonville, Fla.-based company confirmed reports that it has retained Deutsche Bank Securities to assist in its evaluation. RailAmerica is reportedly trying to find a buyer for a 56 percent stake in the company, and Berkshire Hathaway, the owner of BNSF railway, has expressed interest in the company, Fred Frailey, a Trains magazine columnist, wrote sources told him.
“The company further stated that it does not intend to make any additional comments on this matter unless and until a definitive agreement has been reached,” RailAmerica said.
Fortress Investment Group completed the acquisition of RailAmerica in 2007, and the company was relisted on the New York Stock Exchange in 2009.
RailAmerica owns 45 railroads totaling about 7,500 miles of track in 28 states and three Canadian provinces, along with a railroad construction and maintenance firm. The company lost $40.2 million in the first quarter as an $82.4 million charge related to the early retirement of debt offset a 15 percent year-over-year revenue increase.
Contact Mark Szakonyi at mszakonyi@joc.com. Follow him on Twitter @szakonyi_joc.
